Are you planning to pursue higher education but worried about the cost? Don’t let financial constraints hold you back from achieving your dreams. 80E education loans can help you fund your education, and with a little bit of knowledge and strategy, you can increase your loan limit and get closer to your goals.
Firstly, let’s understand what 80E education loans are. Section 80E of the Income Tax Act offers tax deductions on the interest paid on education loans. These loans can be availed for higher education in India or abroad for self, spouse, children, or even your legal ward. The loan amount covers tuition fees, accommodation charges, travel expenses, and any other related expenses.
Now, let’s move on to increasing your loan limit. Here are a few ways to do it:
1. Opt for a higher-ranking institute: The amount of education loan you can get depends on the institute’s ranking. Educational institutions with higher rankings and better placements are considered safer bets for lenders and can help you secure a higher loan amount.
2. Get a co-borrower: Having a co-borrower with a stable income can increase your loan limit. It can be a parent, sibling, spouse, or any other family member, as long as they meet the lender’s eligibility criteria.
3. Good credit score: A good credit score is essential to securing a higher loan amount. Make timely payments on all your credit cards and loans, and maintain a good credit utilization ratio to improve your score.
4. Bring collateral: Offering collateral, such as property or fixed deposits, can increase your loan limit by up to 75%. Collateral can put the lender at ease, knowing they have assets to fall back on in case of a default.
5. Negotiation skills: Negotiating with your lender can help you secure a better offer. Compare interest rates and loan terms from different lenders and try to get the best deal possible.
In conclusion, securing an 80E education loan need not be a daunting task. With the right strategy and knowledge, you can secure a sizeable loan and pursue higher education confidently. Keep in mind the various ways mentioned above to increase your loan limit and make the most of this financial aid. Happy studying!
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